In The News

Global lumber market outlook for 2014

The IHB came out with its 2014 look at the global lumber market, and things look positive.

The IHB reported: While the supply dynamics are becoming more constrained in some areas, the ability for sawmill capacity to ramp up production is an all too familiar dynamic that continues to over-shadow the global lumber market. However, if global demand can achieve a 4 percent (or higher) gain in 2014, the outlook should be very good for lumber and sawnwood prices.

IHB’s North American lumber production predictions look even better. “North American lumber production is expected to increase by almost 3 billion bf (+5.4%) in 2014 – an increase over 2013’s estimated gain of 2.6 billion bf (+5.0%). The stud lumber segment is expected to see the most volatility when U.S. housing starts increase rapidly (i.e., more than 175,000 units per year) and/or as the supply chain tightens.”

Senate Energy and Natural Resources Chairman Ron Wyden (D-Ore.), along with Sen. Mike Crapo, R-Idaho, introduced legislation (S. 1875 ) that would treat wildfires like natural disasters. Wildfires would be treated like hurricanes and tornados, that aren’t paid for out of federal agencies’ regular budgets

In short, the legistation is to prevent the Forest Service and Interior Department from having to raid other accounts to make up for shortfalls in wildfire funding, which has taken place seven times in the last 12 years.

Under the bill, the Forest Service and Interior Department, would be responsible for paying the first 70 percent of average fire costs. Firefighting costs exceeding that amount that would have to come from federal emergency accounts that help pay for the federal government’s response to other natural disasters.

It’s estimated that removing the cost of fire fighting from BLM’s budget could free up to $412 million for them to fund fire prevention and hazardous fuels reduction projects that, in turn, can help break the cycle of increasingly dangerous and costly fires.

Logging Jobs Growing in Oregon

Where are the most new jobs coming from in Oregon? Mining and logging. Jobs in those two areas have grown by 27.3 percent.

“We’re still pulling trees from private lands, despite what has gone on in federal lands,” said Guy Tauer, a regional economist with the Oregon Employment Department.

The jobs are coming from now just logging, but also from mills and reforestation work. The Mail Tribune reported that “Twenty-eight 28 percent of local manufacturing involves wood products, producing a third of the job growth in the sector. That number skyrockets to 80 percent in nearby counties. Jackson County still sees new food manufacturing jobs at companies large and small.”